Top-Toy, the company in Scandinavia behind the BR and ToysRUs chains, is bankrupt. Some of the 300 shops are already closed.

The Management Board of the Danish Top-Toy Group filed for insolvency at the end of December. This also put a stop to the restructuring efforts that had just been started. CEO Per Sigvardsson commented on the reasons on 28 December: “We have come a long way and have had our restructuring plan approved by creditors and the court. We worked around the clock to create the conditions for the restructuring of Top-Toy. Unfortunately, however, we had to realize today that due to a disappointing Christmas business, we can no longer continue with the restructuring.”

Top-Toy described itself as the leading retailer in Northern Europe for toys and other products for children. Sales in Northern Europe were made in the stores under the BR toys and ToysRUs logo. Most recently, the company reported annual sales of over 450 million euros and had over 300 stores. Denmark, Germany, Finland, Hong Kong, Iceland, Norway and Sweden together employed more than 2,000 people.

Top-Toy could not turn the tide in 2018

In 2017, Top-Toy opened numerous new stores – including in Denmark, Iceland and Norway. According to Top-Toy, factors such as changed gaming habits, more competitors and increasing digitalization put the company in a difficult position. There were operating losses and goodwill had to be written off. To reposition itself, Top-Toy made numerous internal changes in 2018. Right at the beginning of the year, Per Sigvardsson started as the new CEO, having changed from the Swedish retailer Granngarden. He was joined by a new Chief Commercial Officer and a new Commercial Director.

At the end of November 2018, Top-Toy submitted an application for restructuring. The restructuring plan was approved on 21 December. Among other things, it stipulated that the administrators should examine all options, including the sale of individual divisions. But no solution had been found, according to Top-Toy.

Danish Top-Toy branches already closed

These are the consequences: With the bankruptcy petition, trustees took over the management of Top-Toy. They are now to sell as many items as possible. Numerous branches have already been closed. At the end of the year, five BR and 21 ToysRUs stores were still open in Denmark. January 10 was the last day for all Danish branches. In Sweden and Finland, sales have begun. There, 38 stores are to remain open as long as the stock lasts.

 

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Link: Scandinavian company Top-Toy has filed for bankruptcy

Image: Top-Toy

//KH